Ocado is looking to cut through the noise of January price-cut promotions with a new campaign centered on customer feedback, as it continues to leverage its strong social media presence.
The ‘Value Worth Talking About’ campaign, created by St Luke’s, takes the form of a mockumentary where animated food items—including fruits, vegetables, and other products—share real customer testimonials. The 30-second TV ad shows a kitchen table laden with animated produce, as a voiceover highlights customer satisfaction with Ocado’s promise to price-match “thousands of products to Tesco.com.”
The timing of the campaign coincides with competitors like Asda, which is reducing prices on more than 2,500 household essentials through its ‘Big Jan Price Drop,’ and Morrisons, which has added 500 everyday items to its Aldi and Lidl price match.
Running through March 31, the campaign will feature both 30-second and 10-second TV spots, along with shorter 15-second and 6-second clips across social media. Additional support will come from radio, digital display, and outdoor ads at major London stations such as Waterloo and Victoria.
This campaign extends Ocado’s ‘Food for Thought’ social media initiative, which generated a 33% engagement rate and was the brand’s most successful social campaign to date. This will be the final collaboration between Ocado and St Luke’s after their partnership since 2020.
Sarah Emerson, Ocado Retail’s Head of Brand, explained:
“Our customers know us better than anyone else, so it makes sense to hear what they love about Ocado firsthand. The animated fruit and veg add a fun, engaging element that reflects our brand perfectly.”
In October 2024, Ocado, in partnership with M&S, was recognized as the fastest-growing grocer for the eighth consecutive month by Kantar. During the 12 weeks ending November 3, Ocado led the growth table with a 9.5% increase in sales. By December 1, the retailer held a 1.8% share of the grocery market.
For its third-quarter results, Ocado Group saw a 15.5% increase in retail revenue, totaling £658m for the 13 weeks to September 1. Average weekly orders grew by 14.7% to 437,000, with a 10.3% rise in active customers to 1.06 million. This growth was attributed to its strategy of offering “unbeatable choice, unrivalled service, and reassuringly good value.”
Improving value perceptions remains a priority for Ocado, as it continues to emphasize price matching with Tesco. In 2023, Cynthia Finke told Marketing Week that Ocado’s focus on marketing efficiency and improved customer targeting plays a significant role in the brand’s retention efforts.
Ocado has also worked to streamline its marketing budget. In the first half of 2023, it reduced spending by a third to £20.1m, maintaining similar levels in 2024. Marketing spend as a percentage of revenue dropped slightly to 1.6% in the first half of 2024.
In September 2024, Ocado launched Ocado Ads, a retail media service marking a new chapter in its retail journey. Jack Johnson, Head of Ocado Ads, stated that the supermarket plans to bring its “challenger mindset” into the advertising industry.
